Friday, October 26, 2007

Pests and the European Parliament

European Parliament in Strasbourg
European Parliament building, Strasbourg, France
This week European Parliament MEPs proposed that spraying pesticides near schools or hospitals should be heavily controlled to safeguard health and food quality.

There would also be a general ban on aerial crop spraying, making it illegal to kill bugs using a method made famous by Alfred Hitchcock's movie North by Northwest.

No doubt, the highly protected agricultural sector would be provided with compensation.

For the pests in the European Parliament whose only exposure to tropical pests is in the rarefied atmosphere of 5-star hotels when on their regular junkets, and the anti-GMerrs, in the comfort of Europe, the mammoth UN environment report that was published on Thursday said:

Losses in total global farm production, due to insect pests, have been estimated at about 1 per cent.

Since 1987 the expansion of cropland has slackened, but land use intensity has increased dramatically. A hectare of cropland, which then yielded on average 1.8 tonnes, now produces 2.5 tonnes.

Unsustainable land use is causing degradation, a threat as serious as climate change and biodiversity loss. It affects up to a third of the world's people, through pollution, soil erosion, nutrient depletion, water scarcity, salinity, and disruption of biological cycles.

The food security of two-thirds of the world's people depends on fertilisers, especially nitrogen.

Population growth, over-consumption and the continued shift from cereal to meat consumption mean food demand will increase to 2.5-3.5 times the present figure.

By 2030 developing countries will probably need 120 million more hectares to feed themselves.

The loss of genetic diversity may threaten food security: 1 animal species make up 90 per cent of all livestock, and 30 crops dominate agriculture, providing an estimated 90 per cent of the world's calories.

Saturday, October 20, 2007

False Panaceas for Fools on Biofuels and Organic Food

Conventional wisdom is dangerous when it comes to climate change remedies and with politicians likely to follow the crowd, it's well to be on guard for what is termed the law of unintended consequences.

So for example, if you believe that you are contributing to alleviating climate change or protecting the environment, by buying organic food, you may be dead wrong. You may also believe that the European Union target to increase the share of biofuels used in transport to 10% by 2020, is a good thing. It may well not be. You may also regard Ryanair's Michael O'Leary's rejection of emission curbs on aviation as pernicious but just consider: Every year, the world loses a forest area the size of Ireland. This accounts for 18 percent of annual carbon dioxide emissions, more than from the world’s entire transport sector. Deforestation must be reversed not accelerated by for example biofuel production. (SEE: Finfacts article).

In recent weeks, there have been warnings that the greenhouse gas situation is being made worse by the emphasis on biofuels. Increased palm oil production in for example Indonesia will accelerate the destruction of the rain forests while in India and China, water supplies will be endangered.

The poor of the poor are at most risk from the jump in grain prices that the increase in subsidised biofuel production in the US has triggered.

The damage to the environment may in fact be worse than the disease.

Dr. Norman Borlaug (1914- ), winner of the Nobel Peace Prize in 1970, is called the Father of the "Green Revolution" and in the words of US Senator Charles Grassley, has "saved more lives than any other person who has ever lived."

Last week, the United Nations Special Rapporteur on the Right to Food, demanded an international five-year ban on producing biofuels to combat soaring food prices.

Switzerland's Jean Ziegler said the conversion of arable land for plants used for green fuel had led to an explosion of agricultural prices which was punishing poor countries forced to import their food at a greater cost.

"232kg of corn is needed to make 50 litres of bioethanol," Ziegler said. "A child could live on that amount of corn for a year."

Using land for biofuels would result in "massacres", he said, predicting a reduction in the amount of food aid sent to developing countries by richer ones.

"It's a total disaster for those who are starving."

Ziegler's proposal for a five-year moratorium, which he plans to submit to the UN General Assembly on October 25, is aiming to ban the conversion of land for the production of biofuels.

Ziegler said he hoped that by the time the moratorium was lifted science would have made sufficient progress to be able to create "second generation" biofuels, made from agricultural waste or from non-agricultural plants such as jatropha, which grows naturally on arid ground.

Taking Brazil as an example, Ziegler said he deplored the fact that sugar cane plantations, whose products were used for biofuels, were spreading at the expense of food-producing land.

He said ten hectares (100,000 square metres) of food-producing land could sustain an average of seven to ten farmers, whereas the same area could only produce enough sugar cane for one farmer.

The use of non-food plants such as jatropha, shows that it is not a simple issue of saying one solution is good, another bad.

Ibrahim Rehman, the director of action programs at The Energy and Resource Institute in India, says that in the absence of a global consensus on specific principles, criteria or standards for bioenergy production, there are indications - especially in the developing world - that the biofuels agenda is being pushed forward with limited understanding of social, environmental and economic implications.

A further complication is that the case for biofuels is often oversimplified. For instance, in India it is argued that crops for biofuels production can be planted on 106 million acres of wasteland - even though a major part of this so-called wasteland is under various uses, not lying vacant, as agricultural planners may assume.

Rehman says that in other situations, biofuels initiatives likely will involve planting on land already in production, or cultivating crops that would otherwise contribute to the food chain - with rising prices of U.S. corn and of cereals in China as cases in point. It will be crucial to properly assess and determine the economics of growing our fuel and its implications on food security.

To an extent, several pilot initiatives are addressing this lack of specific criteria for biofuels production, thus contributing to the nascent development of standards and practices.

In India, one such step in the direction of developing practices and standards is the joint biofuels initiative of BP and The Energy and Resources Institute in New Delhi. The project focuses on growing jatropha - a non-food crop that thrives in conditions where food crops tend to fail - on more than 19,700 acres of land in the state of Andhra Pradesh.

The project encompasses and assesses the complete biodiesel production process, and very poor farmers are involved in measuring jatropha's benefits in augmenting incomes for marginalized sections of society.

The World Bank in its World Development Report 2008, (WDR) which was published on October 19, 2007, says that promising new opportunities for mitigating climate change and creating large new markets for agriculture have emerged through the production of biofuels, stimulated by high energy prices. But few of the current biofuels programs are economically viable, and many pose social (rising food prices) and environmental (deforestation) risks. To date, production in industrial countries has developed behind high protective tariffs on biofuels and with large subsidies.

These policies hurt developing countries that are, or could become, efficient producers in profitable new export markets. Poor consumers also pay higher prices for food staples as grain prices rise in world markets directly due to the diversion of grain to biofuels or indirectly due to land conversion away from food production.

What is the future for the global food supply?
From World Development Report 2008

Agriculture has been largely successful in meeting the world’s effective demand for food. Yet more than 800 million people remain food insecure, and agriculture has left a huge
environmental footprint. And the future is increasingly uncertain.

Models predict that food prices in global markets may reverse their long term downward trend, creating rising uncertainties about global food security.

Climate change, environmental degradation, rising competition for land and water, higher energy prices, and doubts about future adoption rates for new technologies all present huge challenges and risks that make predictions difficult.

To meet projected demand, cereal

production will have to increase by nearly 50 percent and meat production by 85 per cent from 2000 to 2030. Added to this is the burgeoning demand for agricultural feed stocks for biofuels, which have already pushed up world food prices.

Managing the aggregate response of agriculture to rising demand will require good policy and sustained investments, not business as usual. Sharply increased investment is especially urgent in Sub-Saharan Africa, where food imports are predicted to more than double by 2030 under a business-as-usual scenario, the impact of climate change is expected to be large with little capacity to cope, and progress continues to be slow in raising per capita food availability.

The WDR says that Brazil is the world’s largest and most efficient producer of biofuels, based on its low-cost production of sugarcane. But few other developing countries are likely to be efficient producers with current technologies. Policy decisions on biofuels need to devise regulations or certification systems to mitigate the potentially large environmental footprint of biofuels production. Increased public and private investment in research is important to develop more efficient and sustainable production processes based on feedstocks other than food staples.

Dr. Norman Borlaug is presented the Congressional Gold Medal by Speaker of the House Nancy Pelosi, President George W. Bush and Senate Majority Leader Harry Reid on July 17, 2007 - - Professor M.S.Swaminathan, President, National Academy of Agricultural Sciences of India, said at the ceremony: The impact of the Borlaug-led Green Revolution symphony will be clear from the fact that during 1964-68, Indian farmers increased wheat production in four years by an order greater than that achieved during the preceding 4000 years.

Organic Food

Peter Melchett of the Soil Association, Britain's leading organic lobby group, says that environmental concerns, rather than health benefits, are now cited by British consumers as their main justification for buying organic food.

The Economist says that there is no clear evidence that conventional food is harmful or that organic food is nutritionally superior.

The Economist says that not everyone agrees that organic farming is better for the environment. Perhaps the most eminent critic of organic farming is Dr. Norman Borlaug, the father of the “green revolution”, winner of the Nobel Peace Prize in 1970 and an outspoken advocate of the use of synthetic fertilisers to increase crop yields.

He claims the idea that organic farming is better for the environment is “ridiculous” because organic farming produces lower yields and therefore requires more land under cultivation to produce the same amount of food.

Thanks to synthetic fertilisers, Dr. Borlaug points out, global cereal production tripled between 1950 and 2000, but the amount of land used increased by only 10%. Using traditional techniques such as crop rotation, compost and manure to supply the soil with nitrogen and other minerals would have required a tripling of the area under cultivation. The more intensively you farm, Dr. Borlaug contends, the more room you have left for rainforest.

What of the claim that organic farming is more energy-efficient? Lord Melchett points out for example that the artificial fertiliser used in conventional farming is made using natural gas, which is “completely unsustainable”.

The Economist says that Anthony Trewavas, a biochemist at the University of Edinburgh, counters that organic farming actually requires more energy per tonne of food produced, because yields are lower and weeds are kept at bay by ploughing. And Mr Pollan notes that only one-fifth of the energy associated with food production across the whole food chain is consumed on the farm: the rest goes on transport and processing.

The Economist says that the most environmentally benign form of agriculture appears to be “no till” farming, which involves little or no ploughing and relies on cover crops and carefully applied herbicides to control weeds. This makes it hard to combine with organic methods (though some researchers are trying). Too rigid an insistence on organic farming's somewhat arbitrary rules, then—copper, a heavy metal, can be used as an organic fungicide because it is traditional—can actually hinder the adoption of greener agricultural techniques.

Norman Borlaug

Named by TIME Magazine as one of the 100 most influential minds of the 20th century, Norman Borlaug was born in 1914 to Norwegian-American parents outside Cresco in the north-eastern part of the American State of Iowa.

In 1944, Dr. Borlaug participated in the Rockefeller Foundation's pioneering technical assistance program in Mexico, where he was a research scientist in charge of wheat improvement. For the next sixteen years, he worked to solve a series of wheat production problems that were limiting wheat cultivation in Mexico and to help train a whole generation of young Mexican scientists.

The work in Mexico not only had a profound impact on Dr. Borlaug's life and philosophy of agriculture research and development, but also on agricultural production, first in Mexico and later in many parts of the world.

It was on the research stations and farmers' fields of Mexico that Dr. Borlaug developed successive generations of wheat varieties with broad and stable disease resistance, broad adaptation to growing conditions across many degrees of latitude, and with exceedingly high yield potential.

These new wheat varieties and improved crop management practices transformed agricultural production in Mexico during the 1940's and 1950's and later in Asia and Latin America, sparking what today is known as the "Green Revolution." Because of his achievements to prevent hunger, famine and misery around the world, it is said that Dr. Borlaug has "saved more lives than any other person who has ever lived."

Finfacts 2006 report: Enormous tasks ahead to feed the world, says former Nobel Peace Prize recipient

Finfacts Climate Change Reports can be found in the lower right-hand column of the home page.

Saturday, October 13, 2007

Ozone Man's Vindication

Al Gore's award as co-winner of the 2007 Nobel Peace Prize, is a worthy vindication for a man who has promoted environmental issues from his early years in politics.

In the 1992 presidential campaign, President George H.W. Bush nicknamed Gore, then Bill Clinton's running mate, "Ozone Man" and portrayed him as a threat to Americans because of his perceived wacky positions on the environment. Eight years later, Gore was contesting the presidency against Bush's son and "misunderestimated" him to use a Bushism.

American columnist Charles Krauthammer wrote in 2004: Upon losing a game at the 1925 Baden-Baden tournament, Aaron Nimzowitsch, the great chess theoretician and a superb player, knocked the pieces off the board, jumped on the table and screamed, "How can I lose to this idiot?"

Within months of Gore's searing loss of the presidency as decreed by the Supreme Court, President George W. Bush exempted the US from emission targets that were set by the Kyoto Protocol of 1997.

For many, the new president confirmed the view that he was an idiot. Bush in fact wasn't exactly the Neanderthal that his poorly communicated position suggested - see letter of March 13, 2001 to US Senators. A President Gore would also have had a serious challenge in selling climate change to the Republican controlled Congress at that time.


Al Gore Nobel Peace Prize Press Conference

Gore like the superrich Irish rock musician Bono, has been successful as an advocate. Advocacy however, is only the start of the process of reaction and it's the easy part.

Wealthy celebrities can promote their cause, without in any way risking their lifestyle and they often enhance their earning power. The New York Times says that Gore is a multimillionaire who has built a media and high-tech empire around himself and his environmental work. He is an adviser to Google, sits on the board of Apple and is the chairman and cofounder of Current TV, a cable network with 38 million subscribers. He receives up to $175,000 per speaking appearance, although he waives or reduces his fee for some non-profit companies and schools. Fast Company magazine has estimated his net worth at more than $100 million.

The rich like Bono and Gore can buy conscience salving carbon credits and solutions for climate change would be painless for them.

For others, the hard part is ahead.

The jump in the price of oil in the 1970's coinciding with environmental concerns moving up the political agenda in the rich world, ushered in significant advances in technology that has reduced both pollution and increased oil use efficiency. The emphasis on climate change will bring forward a technology leap in decades ahead that will prepare the world for a time when oil will be more costly and harder to extract - e.g. from tar sands - than it is conventionally.

The difficult choices ahead are exemplified by the impact of the ramping up of biofuel production has had on in pushing up grain prices in the US and the warning this week that India and China will face water shortages if they go ahead with their biofuel plans.

The poor of the poor in places like Africa may face the biggest threat from climate change but some remedies may hit them in the here and now. Where does most of the wheat for the World Food Program come from?

Politicians have had little to say on expected lifestyle changes ahead if any, so far and in Ireland, Green Party minister Eamon Ryan has called for a cross-party consensus on climate change measures, suggesting a reluctance to make hard choices. In an ideal world, it would be nice to get all politicians to agree on proposals that would sacrifice short-term popularity. However, where parties in power take credit for everything of a positive slant, apart from the weather,
Ryan's spread the responsibility strategy, will hardly work.

Al Gore Debates Global Warming

Ryan's ministerial colleague John Gormley does not engender much optimism either given the muddle that he has made of waste management policy. He plans to spend millions in hiring international experts to advise him, even though he has already set forth various versions of his own position.

Ireland is a very small part of the climate change issue and the people in Emerging Economies have much further catch-up in spreading the conventional carbon-rich first world lifestyle. More cars, more air conditioning, more showers, more clothes washing, are just part of the emerging scenario.

Just consider how hard it is to get a global trade agreement.

The first world could impose carbon taxes on imports from poorer countries but wasn't it precisely the deflationary impact of those imports that has kept our interest rates in the first world at single digits for the past two decades?

To borrow the words of Winston Churchill in November 1942: this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning

So let's give two cheers for Al Gore's prize!

Related articles on climate change can be found on the lower end of the right-hand column of the Finfacts home page.

Wednesday, October 10, 2007

The Hidden Ireland and the Vested Interests with the Grip on the Public Megaphone

Tánaiste and Minister for Finance Brian Cowen TD - - After the last sham benchmarking, it is "likely" that the Benchmarking Body will take account of the public service pensions that would require the equivalent of 28% of salary for 40 years in the private sector! More...

This morning on RTE Radio 1's flagship news programme Morning Ireland, a representative of the Aer Lingus pilots/shareholders, outlined their case for the application of a model in relation to international bases, which the airline may establish, that is the antithesis of the model that has been the central pillar of Irish economic development for the last half-century i.e. principally American companies could set up operations in Ireland and operate in accordance with local market conditions.

Taoiseach Bertie Ahern on Tuesday had given the pilots' union a hope of a fudge on conditions for pilots at the new base in Belfast, by saying that both sides should resume talks. It's a tack that has worked fine for a while during times of plenty, with the likes of sham benchmarking, but sometimes a clear line must be drawn.

Some time later on Morning Ireland, a representative of the Irish Medical Association outlined why doctors are threatening a strike at Dublin's Beaumont Hospital because of the reduction in overtime. Not too long ago, the whinge was that junior doctors were expected to work too long. Surprise! surprise!

In both cases - excess and inadequate overtime, the ostensible concern is safety of patients.

Another morning it could be medical consultants carping about salaries of over €200,000 being "mickey-mouse" money or teacher unions whinging about some grievance, all on behalf of the patients again or the school children.

In the hidden Ireland, there are hundreds of thousands with no job security and on terms and benefits that pale in comparison with those of the vested interests that have a firm grip on the public megaphone.

IBEC, which represents large Irish employers, said on Tuesday that in the period 1999 to 2006, compensation per private sector employee in Ireland rose by 42%, compared to 15% in the euro area, and just 7.5% in Germany.

Politicians pay increased about 90% in the period and the rest of the public service in the period 2001-2006 saw their pay increase by 38% (additional staff are excluded in arriving at figure) compared with a rise of 19% in the average industrial wage which is €32,000 - not too much more than Trevor Sargent TD, who lives in Balbriggan, North Dublin, claimed in travel expenses last year.

The Tánaiste and Minister for Finance, Brian Cowen said last week that the Benchmarking Body in making comparisons is likely to give greater weight to the value of the public service pension package "in view of developments in relation to pensions across the economy in recent years."

Likely???

A private sector worker can provide for the equivalent of a public service pension for a maximum of two-thirds of final salary for retirement. However, 28% of salary would have to be put aside every year for 40 years to do so.

In the private sector, there are 900,000 workers without any occupational coverage.

Having a grip of the public megaphone pays dividends big time and the politicians are good at feathering their own nests.

One can well ask, where is the outrage from the hidden Ireland?

Anyone for Benchmarking.....but perish the thought that there would be public sector reform.

Saturday, October 06, 2007

Happy 10th Birthday Irish Planning Corruption Tribunal; Land Rezoning Reform: ZERO

Dublin Castle, the location of public corruption tribunals -Politicians were revealed to have sold their integrity for as low as €3,000.

The corrupt land rezoning system that makes multi-millionaire of farmers and others, is immune from reform.

Irish politicians are not known for political courage or conviction, whether in the area of social policy that is left to the Courts or economic issues that would challenge vested interests.

For more than four decades, the Irish population has been threatened with shame and embarrassment by being hauled before the courts for non-payment of a television licence - or let's call it a tax, for this purpose.

During much of that time, anyone who could evade taxes, did it on a massive scale and to borrow a line from the late Queen of Mean, Leona Helmsley, who recently hit the news by willing her dog $12 million: "We don't pay taxes. Only the little people pay taxes."

Some of our little people, were charmed by a political leader such as Charles Haughey and bought into a plot similar to the James Stewart 1946 film It's A Wonderful Life.

In our history, the name "Oliver Cromwell" and the word "landlord" has induced frisson in many an Irish person.

Haughey's mentor, current Taoiseach Bertie Ahern however has done a good makeover on the word "landlord" with another sequel to the James Stewart story. This time, the angel Clarence in the person of Michael Wall brings a case full of cash to the distraught "George Bailey." The angel as the landlord, not only wills his house to the tenant but in the event of the tenant's death, to the latter's children.

There are believers in UFOs and yarns but beyond stories of sterling and dollars, there are two striking aspects to the Irish Planning Corruption Tribunal that will celebrate its tenth anniversary next month.

News of the nexus between land rezoning - Ireland's crack cocaine - and politics is no news. Secondly, after a decade of public confirmation of corruption, the system that spawned the corruption, has been subject to ZERO reform.

The days of the brown envelope may be past but anyone who believes that the incentives for more subtle forms of corruption have abated, is an idiot, given the huge value changes that rezoning decisions, or the prospect of them, trigger.

Is there a prospect of change? Absolutely not.

My mother used to say to expect nothing and you won't be disappointed. In that regard, it is arguable that the Green Party leadership has done more damage to the reputation of politics in recent times, than anyone else.

John Gormley's Faustian bargain for power is not tied to measurable objectives such as changing the corrupt rezoning system but to more stellar ones such as saving the polar ice-cap. While important too, the reality is that an Irish politician, representing 4 million from a global population of 6.5 billion, has to comply with EU targets and piggy-back on the credit of others from more significant economies, if there will be anything to brag about.

The Irish Times reported last May: Green Party leader Trevor Sargent described the Taoiseach Bertie Ahern as a political "dead man walking" and claimed no party would be willing to serve in a coalition government led by him because of the questions about his personal finances.

He said he could not "see any party to be honest accepting the moral authority which is expected of a taoiseach with Bertie Ahern in that office".

"I feel that Bertie Ahern as a result of the Tánaiste essentially calling him a liar is politically now a dead man walking. When people vote for Fianna Fáil the question will be on their minds as to who they are voting for as leader because it's very likely it won't be Bertie Ahern."

He added: "The questions of his own personal finances and his relations with individuals which he didn't want to make public but has been made public, does, I believe, call for a new start in Irish politics where standards are set at the very highest level which take out any confusion about vested interests and who controls decision making in Government."

Trust me? And the same people bewail widespread cynicism!

Within weeks, Trevor Sargent avidly drank the soup despite the cant on moral authority and became a Minister in Ahern's Government!

On September 26th, Green Party Leader John Gormley spoke in support of Bertie Ahern in a Dáil confidence debate: When the Green Party made the decision to enter Government last June, its members knew a process was in train and that the Taoiseach was due to give evidence to the Mahon tribunal. It has been our consistent line that we will await the outcome of that tribunal. It is important that the tribunal be allowed to conduct its work unimpeded and that no attempt is made to prejudge the outcome.

Consistent? Four months is a long time to be consistent!

Change does happen eventually in Ireland but don't doubt that it's at a slower pace than the glacial speed in the Arctic and the penny may well drop at some point for the Dr Faustus of modern Irish politics.

The message on the one tax - the television licence - that continues to get promotion on the broadcasting airwaves, has also changed in recent times.

Besides scaring the little people, business owners who may be dawdling the day away watching trash daytime TV, are now also under threat of shame and embarrassment not only in the courts but in front of staff, when an inspector calls.

That's progress at least, if not a little more democratic but dare anyone impinge on the potential bonanzas for farmers - who are already largely dependent for most of their income on European taxpayers, and continue to have the opportunity of a double-dip with the system of rezoning, paid for dearly by house purchasers!

John Gormley's Planet Bertie Speech Feb 2007

Irish Politics and the Value of "Values" - - Minister for the Environment and Green Party leader says in Feb 2007 that the Fianna Fáil party is "without vision or values" and that Michael McDowell, then PD leader was Bertie Ahern's Tammy Wynette - Stand by your Man - a role Gormley plays months later.

Gormley may well have done more damage to the reputation of Irish politics than Bertie Ahern because of the huge gulf between his words and actions.



Postscript: It will be reassuring that a poll apparently conducted by the Sunday Independent among 400 people on Friday, by a team of "professional telephone pollsters", has found that the public's support for Bertie Ahern has not wavered.

The identities of the "professional telephone pollsters" is not given in contrast with polls published by other newspapers. Readers have to make up their own minds if the poll is a figment of someone's imagination.

Whether it's the Wall Street Journal, the Irish Independent or the Irish Times, no serious newspaper has its staff call people from the phone book and then present it as a poll.

If the poll did take place, it's clear that it wasn't scientific.

Anyway, the Taoiseach's satisfaction rating "remains rock solid" at 50 per cent, five points ahead of Mr Kenny (45 per cent), with the new Labour leader, Eamon Gilmore at 43 per cent.

The Greens leader, John Gormley, "will be heartened" by his emergence as the second most popular leader (47 per cent), a possible reflection of his continued support for Mr Ahern (what a surprise???), and of his party honouring its deal to stay in Government, in the face of huge political and media pressure in the aftermath of the Taoiseach's evidence to the Mahon Tribunal.

The so-called "poll" appears to be another front in a newspaper war.

Sunday Business Post Political Correspondent Pat Leahy writes:

The Taoiseach’s future has become a sort of ideological battleground between two newspapers, neither of which takes prisoners.

The Sunday Independent has followed its abrupt pre-election u-turn by backing Ahern aggressively in its news pages and in many of its opinion columns. The Irish Daily Mail - and particularly its Sunday edition, a direct competitor for mid-market readers - has hounded Ahern relentlessly and mercilessly.

It is a brutal commercial conflict, personalised by the antipathy many of the journalists on each paper appear to feel for their rivals, an antipathy that is openly acknowledged. Recently one Sunday Independent columnist decried the ‘‘British newspaper’’ for trying to take down an ‘‘elected Irish Taoiseach’’.

The Mail responds by boasting of its scoops on Ahern’s finances and sneering at the Sunday Independent’s sudden conversion to Ahern’s cause.

The Mail says the facts are against Ahern; the Sunday Independent says the people are on his side.Maybe both will turn out to be right. But Ahern has fought his last election as leader of his party; the support of the people is not as important for him as it was before May.

And one thing is certain: Fianna Fail will not fight an election to save him.

Monday, September 24, 2007

President Sarkozy calls for increase in European Central Bank key interest rate!!!

French President Nicolas Sarkozy has been baiting his compatriot Jean-Claude Trichet, European Central Bank President in recent months to cut interest rates and give politicians a greater role in ECB decision making.

Ten years ago, they crossed swords when Sarkozy was Budget Minister and Trichet was President of the Banque de France.

The above headline is a joke because it would never happen.

Former Federal Chairman Alan Greenspan says in his book The Age of Turbulence (click for excerpt):

The Federal Reserve's pre-1979 track record in heading off inflationary pressures was not a distinguished one. In part, that earlier history was a consequence of poor forecasting and analysis, but it also reflected pressures from populist politicians inherently biased toward lower interest rates. During my eighteen-and-a-half-year tenure, I cannot remember many calls from presidents or Capitol Hill for the Fed to raise interest rates. In fact, I believe there was none. As recently as August 1991, Senator Paul Sarbanes, in response to what he considered intolerably high interest rates, sought to remove voting authority on the FOMC [the board that controls the federal funds rate, the primary lever of monetary policy] from what he perceived were the "inherently hawkish" presidents of the Federal Reserve banks. Interest rates declined with the 1991 recession, and the proposal was shelved.

I regret to say that Federal Reserve independence is not set in stone. FOMC discretion is granted by statute and can be withdrawn by statute. I fear that my successors on the FOMC, as they strive to maintain price stability in the coming quarter century, will run into populist resistance from Congress, if not from the White House. As Fed chairman, I was largely spared such pressures because long-term interest rates, especially mortgage interest rates, declined persistently throughout my tenure.

It's a great argument for central bank independence to keep in mind that politicians would never call for higher rates despite the justification.

Sarkozy tells ECB to follow Fed and cut rates; Merkel and Trichet strongly defend the central bank's independence

Friday, September 21, 2007

Hedge Fund Managers, Cold Sweats and Soothing Words from a Psychologist

The American writer Tom Wolfe termed bondtraders "Masters of the Universe" in his 1987 novel Bonfire of the Vanities.

It was the year of the Black Monday market crash and also one where another work of art had a big impact on the attitude of the public to business - Michael Douglas playing asset-stripper Gordon Gekko in the movie Wall Street. (see his famous "Greed is Good" address to shareholders.)

Fast -forward 20 years and the hedge fund manager has replaced the bondtrader as a Master of the Universe - or so they think!

Top 25 hedge fund earners raked in more than $14 billion in fees in 2006 - equivalent to the GDP of Jordan or Uruguay

The big cats get lots of cream and today, the Forbes magazine list of the top 400 richest Americans has more than half who are hedge fund or private equity managers.

Not all the Mr 20%'s are plutocrats (the deal apart from most of their earnings being treated as capital gains, resulting in people like Warren Buffett's secretary paying a high tax rate - Buffett calls hedge fund managers "helpers - gives managers 20% of profits or more, together with fund fees of 2-5%.

What has been striking in recent years is that average returns are far from jaw-dropping compared with general market returns.

This week the New York Times had a story on the reaction to hedge fund losses in August when the general market advanced. Many readers must have enjoyed the schadenfreude.

A Times report said that after years of eye-popping returns, sudden losses can be wrenching. Aware of the psychological impact that high-pressure trading can have, several funds have retained psychologists to counsel stressed managers.

“It has been a very challenging period for these people,” said Jonathan F. Katz, a psychologist who works with large hedge funds. “I have seen people shaken, their confidence eroded. They are upset and depressed.”

The writer noted that such anxieties become all the more acute when taken with the boundless spending habits developed at the height of the hedge fund bubble.

As an example, Katz cites a client who, in the middle of the market turmoil in August, found himself closing on an expensive apartment in Manhattan.

“All of a sudden, two or three of his major positions were down,” Katz said. “He was on an emotional roller coaster. He had put himself out there, and now he felt horrible because he had lost his firm tons of money.”

The Times says such distress can result in what some call a social contagion, as hedge fund executives let their woes at work affect their personal lives. Investors have said that their golf scores soar, that they lose their appetites and wake up in the middle of the night in a cold sweat!

To be sure, many investors are cool headed enough to not let inevitable setbacks derail them. But others find it hard to keep their sense of self insulated from losses.

“Some people are debilitated by it,” said Ari Kiev, a psychiatrist who works principally for SAC Capital, the hedge fund founded by Steven A. Cohen. “You can’t sleep; you can’t eat; you have catastrophic thoughts about losing your house.”

The Times says that a prominent hedge fund investor, who like the other executives who discussed their anxieties asked not to be identified, spoke of a crisis of confidence. “

"It’s an intellectual destabilization,” he said. “All of a sudden, your funds are down 5 percent and the S.& P. is down 1 percent. Once you were master of the universe, but the market makes you humble.”

Humble for how long?

Some people are debilitated by it - yes indeed - such as those at the bottom of the pyramid who are subject to foreclosures.

Friday, September 14, 2007

Pious Platitudes and Climate Change

View of rising Earth about five degrees above the Lunar horizon, taken on December 22, 1968 - - This is one of the more famous images of the Earth from the Apollo program, taken by the Apollo 8 astronauts as they became the first humans to circumnavigate the Moon.

The rising Earth is about five degrees above the lunar horizon in this telephoto view taken from the Apollo 8 spacecraft near 110 degrees east longitude. The horizon, about 570 kilometers (250 statute miles) from the spacecraft, is near the eastern limb of the Moon as viewed from the Earth.

On the earth, the sunset terminator crosses Africa. The south pole is in the white area near the left end of the terminator. North and South America are under the clouds. The lunar surface probably has less pronounced colour than indicated by this print. Photo: NASA -
US National Aeronautics and Space Administration

The issue of climate change is very important but the danger of misguided good intentions has been illustrated this week by the impact that the encouragement of biofuel production will have on food prices, in particular for the poor in developing countries and also the risk of damage to the environment.

A report prepared for a ministerial meeting by the Organisation for Economic Co-operation and Development (OECD) said governments should end subsidies for biofuels, as the demand for grain for the alternative energy industry result in surging food prices and the potential destruction of natural habitats, including rain forests.

The European Union target for 2020 that 10% of energy used in the EU should come from plants, has been called into question.

Brice Lalonde, the head of the Organisation for Economic Co-operation and Development’s round table on sustainable development, said on Wednesday that it may not be possible to hit the target using “sustainable” methods, as called for by European Union leaders in March.

Lalonde, a French former environment minister, said: “The message was to be careful and take a long hard look at the issues. Several people were very blunt in saying that you cannot ask nature to do everything. You cannot feed people and soak up carbon and protect biodiversity and fuel cars.”

Forest burning puts Indonesia in the third rank of greenhouse gas emitters after the US and China. It is ramping up palm oil production for biofuels and the huge Kalimantan rainforest peatlands are under serious threat. When the forests are cleared the natural carbon sink that is rich in methane gas combusts and much of South-East Asia gets covered in smog.

There are many very big challenges to address in relation to climate change.

It was for example reported this week that Opec countries' demand for oil is growing prodigiously - it is rising at 2½ times the global average rate - reducing the amount they can supply to the rest of the world.

Jeff Rubin, chief economist of CIBC World Markets in Toronto, said oil cartel Opec countries and other oil producers like Russia and Mexico were "cannibalising" their own production. According to the International Energy Agency, the rich countries' energy watchdog, Opec accounted for 22 per cent of the roughly 8m barrels a day increase in world oil demand between 2000 and 2006.

Ireland of course is a small fry when it comes to climate change and our principal role is to comply with EU plans.

Minister for the Environment and Green Party leader John Gormley TD said last month that a cabinet sub committee on climate change, which will be meeting this month, will have a central role in formulating and implementing Government policies and initiatives in this area.

"The establishment of a special cabinet sub committee, which includes the Taoiseach, is an indication of the priority this Government is attaching to addressing climate change," Gormley said. "The committee and the Government have an ambitious and challenging programme of work ahead in tackling the climate change issue, in both the shorter and longer term."

The Minister said, "I envisage that by the end of the year there will be a number of positive initiatives on reducing emissions in Ireland. These include proposals for rebalancing VRT and motor tax, the establishment of a climate change commission, and ambitious new energy efficiency targets for new homes."

Gormley's comments on policy so far have been confusing.

He opposes incineration as an alternative to landfill and says that alternative technologies, such as Mechanical and Biological Treatment, built on a smaller scale, provided much better scope for reducing reliance on landfill. However at the same time, he says that European and national standards need to be set for these technologies to ensure they can operate to the highest possible standards.

Gormley said he would be issuing directions to local authorities "to ensure that local authorities do not introduce any measures to effectively skew the market in favour of either landfill or incineration by directing or guaranteeing waste streams to such facilities."

The Minister said on September 3rd that an independent international review of regional waste plans would be carried out, which will examine the potential contribution of technologies such as Mechanical and Biological Treatment.

Simply, Gormley has said what his policy is but at the same time will get an independent international review to produce a report that may well contradict it.

"In the context of this review I will also consider increasing the landfill levy from its current low rate of €15. As part of this I will also examine whether it may be necessary to extend the levy to include municipal incinerators. I do not see why incineration should not be subject to the same financial regime as landfills," Gormley said.

This is duplicity cloaked in the veneer of reason.

As an incineration plant requires significant capital investment, the message Gormley is sending is that he will ensure that such ventures are doomed. He is Minister for the Environment of a country that sends 70% of its hazardous waste overseas for incineration!

It's very much in the Irish political tradition of self-back slapping for taking "moral" stands while we export our problems. In a similar vein, we can use the import route as for example in taking electricity from the UK - which may or may not be produced via nuclear power.

It is at least something at least that the Green Party leader gives even selective credence to scientific evidence even though he has decided the issue in davance!

On Friday, his government's Chief Scientific Adviser highlighted the sharp divergence between the scientific evidence and public perceptions of GM foods. However, as with incineration, Gormley is at his best also following the anti-GM crowd.

"Minister Gormley said he was open to hearing from everybody in this debate on whether landfill levies should be increased and whether an incineration levy should also be introduced," a press release noted.

Later in September John Gormley will address a UN meeting on climate change in New York. He should use the opportunity to thank other ministers for their countries support in burning Irish hazardous waste!

When Gormley cannot provide a coherent policy for this country, God help the rest of the world!

Forest countries seek carbon credits; Indonesia's Rain Forest Peatlands

OECD report calls for end to biofuel subsidies; Food price surges and damage to the environment consequence of current policies

Rising global greenhouse gas emissions will cost more than $200bn a year to return to today’s level of emissions by 2030

About 50% of the increased demand for energy services in the 26 International Energy Agency member countries was met through increased energy use, and the other half through improvements in efficiency in the period 1990-2004

Report launched on Key Meteorological Indicators of Climate Change in Ireland

Gormley Opposes Incinerators in Ireland but Supports Export of Irish Hazardous Waste for Incineration

Extreme weather the norm across globe; Temperatures highest since 1800


Saturday, September 08, 2007

Freeloaders to reduce Air Travel in interests of Planet! Like hell they will!

Dipak Patel, former Zambian Minister of Commerce, Trade & Industry - - The Irish brought 21 civil servants to Hong Kong - more than five times Patel's trade division staff total and the Irish had little of substance to do. Some of the 40-person Irish delegation, were there to "represent" the poor of the developing world.

In December 2005, 30 Members of the European Parliament (MEPs) flew to Hong Kong to "monitor" progress in the Doha trade talks, where they demanded almost daily updates from Peter Mandelson, EU Trade Commissioner, despite the fact that as parliamentarians they had no role in the negotiations. The total of trips by official parliamentary delegations in 2005 was 43.

It's easy to be generous to yourself, with business class travel and top-notch hotels, when someone else is paying.

Three Irish Ministers brought an entourage of 21 civil servants to the same meeting.

The 24 Irish officials were joined by 16 other Irish freeloaders from lobby groups such as IFA (farmers) and IBEC (business) and representatives from groups working for the world's poor.

Conor Lenihan, then (Junior) Minister for Overseas Development, was there also to "defend" the interests of the poor of the world while the Minister for Agriculture Mary Coughlan was there to ensure that Mandelson would not concede anything to developing countries that would damage the interests of Irish farmers.

It must have been some donnybrook with Ireland one of the149 member countries of the World Trade Organization with delegations there and we had 40 from a country of 4 million people.

A French chef who worked at the Saudi State Guest House in Jeddah in the early 1990's, told me that Pakistan' then Prime Minister Benazir Bhutto had brought 85 freeloaders on a trip to Saudi Arabia with her.

However, not everyone can play that game.

Dipak Patel, Zambian Minister of Commerce, Trade & Industry in 2005, who was the Chair-Co-ordinator for the Least Developed Countries WTO negotiations Jan-Dec 2005 has said: "...the Financial Times has a bigger trade team than our entire trade division."

The FT's Alan Beattie, in an article titled: Dipak and the Goliaths (unrestricted), wrote in December 2005: It is late at night in a bar by the Zambezi river when Dipak Patel, trade minister from the impoverished southern African state of Zambia, finds the perfect way to illustrate how hard his job is. “So how many people does the Financial Times have covering trade?” he says. Well, I say, there’s me (the world trade editor), a reporter in Geneva who spends most of her time on trade, someone in Brussels, someone in Washington, and of course our bureau chiefs and reporters around the world spend a fair amount of their time writing about it. “God,” Patel says, contemplating the rows of luxury cognac bottles behind the bar, waiting for the rich tourists. “The FT has more capacity to do trade policy than we do.”

When asked on RTE's Morning Ireland what all the Irish were doing in HK - the reality of course was sfa - Conor Lenihan provided an example of his endeavours for Ireland (besides the poor of the world of course). He had ran into a man from China who had expressed a desire to invest in Ireland!

Three Irish officials at most would have sufficed for the trip to HK and the staff at the Consulate could have been on hand to roll out the red carpet.

So in an age of concern about climate change, don't be foolish and expect anything to change even with the appendage of the Green Party at the Cabinet table.

A press release issued last month by the Department of Environment stated: Minister Gormley, at the request of the Taoiseach, will be travelling to the UN in New York next month to represent Ireland and address a heads of State meeting which will be discussing climate change.

There will also be heads of government at the meeting, we assume!

How many bag carriers will Ahern and Gormley bring to New York?

In true Hollywood style, the Government will buy compensatory carbon credits - a salve-conscience routine that is the modern equivalent of the poor box.

So most of the 185 heads of government or State will drone on about climate change in an almost empty chamber, but the serious work will be at the UN climate change conference in Bali in December, which aims to lay the groundwork for a treaty to replace the Kyoto Protocol on curbing emissions.

Progress in Bali will not be helped by hordes of the usual freeloaders/hangers-on scrambling to get to the island.

Meanwhile, on Friday, the Irish Independent carried a report on a super-junket by Irish local politicians.

Years ago, to reduce the opportunities for corruption, councillors were left with one real power - land rezoning!

Besides their involvement in creating an artificial scarcity of land for development, in a country that is 4.0% urbanised, Irish councillors are also well known for their overseas 'fact-finding' missions.

A few decades ago, a local government conference in Brighton in Southern England had 150 attendees and about 120 were Irish.

The Independent reported that a group of 25 county councillors are on a 'secret mission' to investigate landslide fencing in Austria.

The Mayo councillors flew out Thursday from Dublin Airport for a four-day trip which is shrouded in mystery.

Mayo county secretary John Condon refused to reveal how many councillors were on the trip or what its purpose was.

"I don't have time because I have more important business to attend to. Next week you'll get all the information you need," he said, before hanging up.

However, the Irish Independent said that the purpose of the trip is to visit a factory in Austria which supplied the council with €900,000 of landslide barriers.

They are also scheduled to visit Salzburg, the historic town where the 'Sound of Music' was filmed.

The 'fact-finding' mission to Austria has accounted for 25 of the county's 32 councillors, as well as local authority officials and local newspaper reporters.

Some of the councillors are also believed to have been on a delegation sent by Mayo County Council to Argentina last March.

They attended ceremonies to commemorate the 150th anniversary of the death of Admiral William Browne, the Mayo-born founder of the Argentinean Navy.

The newspaper reported that it is understood that Mayo County Council organises a 'fact-finding' mission to Europe every year, with recent trips including a walking tour in England.

So expect lots of actionless action on climate change issues ahead but don't expect freeloaders in Ireland or elsewhere to imperil the global aviation and hotel industry.

Saturday, September 01, 2007

The Irish Media and Economics

Professor Michael Buckley

My attention was recently grabbed by the news that Michael Buckley former Chief Executive of AIB Bank, has been appointed as adjunct (an associate or assistant of another - one of the definitions in Merriam-Webster) Professor of Economics at University College Cork.

I had 35 lecturers during my six years at UCC and only two were not cures for insomnia. Bryan McMahon, son of renowned Listowel writer Bryan McMahon was one of them as then lecturer in European law and the other was a non-academic, Richard Haslam who was then Limerick County Manager. As a lecturer in the subsidiary subject of Public Administration, Haslam had the ability make subjects like the Public Health Act of 1878 interesting. As for the rest, one of them, a lecturer in economics, who had a style not that different from my father when he stumbled on something interesting in The Cork Examiner and began reading aloud, told me on one occasion that he had given up on economics years before. His speciality was microeconomics - exciting stuff of course like the elasticity of demand curves.

I saw Buckley once on television being interviewed on BBC's Newsnight by Jeremy Paxman after news of the Rusnak currency fraud scam broke. Resembling in appearance, the late brilliant Scottish actor Alastair Sim, Buckley is no Cicero but it would be some change if a former Irish bank CE provided an honest appraisal of Irish public policy issues rather than the default role as well-fed yesmen on company boards. Buckley started his career as a civil servant becoming Chef de Cabinet to the President of the European Court of Auditors, Luxembourg between the years of 1977 and 1981 and subsequently was a senior official in charge of public expenditure at the Department of Finance.

Economists have become more ubiquitous since I graduated and in the private sector most positions are in financial services. Basically that role is a hybrid of public relations and economics. If you cannot glean a silver lining from the darkest cloud, your career prospects would be pretty limited. The long term horizon for such economists is two to three years at most.

"Although the media are doing their best to put the fear of God into consumers by talking about a huge slump in the economy over the next couple of years, the underlying fundamentals continue to suggest that, outside the housing sector, things are still going well," said Bloxham Stockbrokers Chief Economist Alan McQuaid according to the Irish Independent.

Yes indeed! Haven't we heard of "fundamentals" for six months from the time the subprime crisis broke last February? The line from the vast majority of financial industry spokespeople was that there would be no contagion from a relatively small segment of the US mortgage industry. Now undaunted by having been proved so wrong and with their bonuses on the line together with their company stockholdings at risk, the clarion call is for the Fed to cut rates steeply again - which had some unintended consequences the last time the course of action was taken in 2000 and 2001.

The main Irish media organisations have economists who generally provide a balanced presentation on economic events. There are of course scary headlines at times but what should be expected in a democracy when the countervailing force is often self-interested spin from politicians and industry folk with an eye on their wallets.

The principal problem is that economics is a niche area and journalists without a knowledge or interest in the area, are manna for the spin of politicians and others.

The stamp duty debate, which began a year ago this month when the new leader of the Progressive Democrats Michael McDowell proposed its abolition or reform in respect of house purchases, as a measure to alleviate pressure on the "coping classes," is a great example of how the media fell for the spin.

The Sunday Independent had most of its columnists write about the pernicious system over several weeks. What was so bizarre about the debate was that the related issue of the VAT tax of 13.5% on the cost of new houses (there is no VAT applied in the UK) was ignored as was the corrupt land development system that makes multimillionaires of farmers near Irish towns.

Is the resultant cost for house buyers a direct tax and the inflated cost of roadbuilding because of a sweetheart deal with farmers, an indirect tax?

Michael McDowell later presented another wheeze on RTE Radio 1's Morning Ireland programme. The old age pension would be raised to €300 per week during the lifetime of the following government.

He spoke of course about pensioner poverty but wasn't asked about the causes of such poverty - the fact that almost a half of the workforce have no occupational pensions compared with the gold-plated ones for his then profession should have been raised.

As most journalists are economically challenged or have limited interest in the area, spin still wins out despite the pleas of the spinners about negativity in the media.

A postscript to the stamp duty debate is that economist Marc Coleman who promoted stamp duty reform in his last months as Economics Editor at The Irish Times, has moved to The Sunday Independent.

He is unlikely to have the same freedom in his new perch at The Sunday Independent and last Sunday offered some crumbs of hope to the spinners in an interview on a forthcoming book: "As I said I'm an optimist and although I have no problem talking sense into the economy, I never talk the economy down like some others do. Last week ECB President, Jean Claude Trichet, intervened to steady nerves just as financial markets were losing their grip. In my own small way, I think of myself as doing the same for the Irish economy. Commentators have to remember that someone else's job may sometimes depend on what they say."

I wish these people had the cojones to name the baddies who "talk the economy down."

RELATED:

Irish Economy - Many short-termists silent on likely challenges in medium to long-term

Tuesday, August 28, 2007

Irish Property Obsession, British Landlordism and Myths


An image from a contemporary publication of the lynching and burning of a black man by an Irish mob in New York City in July 1863, during the Civil War Draft Riots. © Collection of the New-York Historical Society

Every country has its myths, which may partly reflect reality but more often than not are used to avoid what Al Gore might call an "inconvenient truth."

For example, the Irish obsession with property is often attributed to our historical experience of British landlordism.

The experience of many people with the grubby rental market with its leases of a maximum of a year, has more likely much more to do with it. Besides, we Irish have no aversion to being landlords.

When Irish farmers who get up to 80% of their income from public funds, make multi-million euro killings from the corrupt land rezoning system, which creates an artificial scarcity of land for development, they're very happy to become landlords of residential and commercial property. The latter is particularly popular as business tenants across the globe are less hassle prone than Joe Soaps.

Landlordism was part of a pernicious economic system as was slavery.

Landlordism has been an important part of our narrative of victimhood and we like other peoples have the same proclivity to airbrush out inconvenient truths.

When the Civil War broke out in the US, the Irish landlord system was still reeling from the impact of the Potato Famine of the 1840's. In New York, the Irish had become a force in the pro-slavery Democratic Party and strongly opposed the end of slavery because of the perceived economic threat from an influx of freed slaves.

In January 1863, the Emancipation Proclamation became law.

In his 1991 book, In the Shadow of Slavery: African Americans in New York City, 1626-1863, Leslie M. Harris wrote that: In March 1863, fuel was added to the fire in the form of a stricter federal draft law. All male citizens between twenty and thirty-five and all unmarried men between thirty-five and forty-five years of age were subject to military duty. The federal government entered all eligible men into a lottery. Those who could afford to hire a substitute or pay the government three hundred dollars might avoid enlistment. Blacks, who were not considered citizens, were exempt from the draft.

In the month preceding the July 1863 lottery, in a pattern similar to the 1834 anti-abolition riots, antiwar newspaper editors published inflammatory attacks on the draft law aimed at inciting the white working class. They criticized the federal government's intrusion into local affairs on behalf of the "nigger war." Democratic Party leaders raised the specter of a New York deluged with southern blacks in the aftermath of the Emancipation Proclamation. White workers compared their value unfavorably to that of southern slaves, stating that "[we] are sold for $300 [the price of exemption from war service] whilst they pay $1000 for negroes." In the midst of war-time economic distress, they believed that their political leverage and economic status was rapidly declining as blacks appeared to be gaining power. On Saturday, July 11, 1863, the first lottery of the conscription law was held. For twenty-four hours the city remained quiet.

On Monday, July 13, 1863, between 6 and 7 A.M., the five days of mayhem and bloodshed that would be known as the Civil War Draft Riots began.

The rioters' targets initially included only military and governmental buildings, symbols of the unfairness of the draft. Mobs attacked only those individuals who interfered with their actions. But by afternoon of the first day, some of the rioters had turned to attacks on black people, and on things symbolic of black political, economic, and social power. Rioters attacked a black fruit vendor and a nine-year-old boy at the corner of Broadway and Chambers Street before moving to the Colored Orphan Asylum on Fifth Avenue between Forty-Third and Forty-Fourth Streets. By the spring of 1863, the managers had built a home large enough to house over two hundred children. Financially stable and well-stocked with food, clothing, and other provisions, the four-story orphanage at its location on Fifth Avenue and Forty-Second Street was an imposing symbol of white charity toward blacks and black upward mobility.

At 4 P.M. on July 13, "the children numbering 233, were quietly seated in their school rooms, playing in the nursery, or reclining on a sick bed in the Hospital when an infuriated mob, consisting of several thousand men, women and children, armed with clubs, brick bats etc. advanced upon the Institution." The crowd took as much of the bedding, clothing, food, and other transportable articles as they could and set fire to the building. John Decker, chief engineer of the fire department, was on hand, but firefighters were unable to save the building. The destruction took twenty minutes.

Throughout the week of riots, mobs harassed and sometimes killed blacks and their supporters and destroyed their property. Rioters burned the home of Abby Hopper Gibbons, prison reformer and daughter of abolitionist Isaac Hopper. They also attacked white "amalgamationists," such as Ann Derrickson and Ann Martin, two women who were married to black men; and Mary Burke, a white prostitute who catered to black men. Near the docks, tensions that had been brewing since the mid-1850s between white longshoremen and black workers boiled over. As recently as March of 1863, white employers had hired blacks as longshoremen, with whom Irish men refused to work.

An Irish mob then attacked two hundred blacks who were working on the docks, while other rioters went into the streets in search of "all the negro porters, cartmen and laborers . . . they could find." They were routed by the police. But in July 1863, white longshoremen took advantage of the chaos of the Draft Riots to attempt to remove all evidence of a black and interracial social life from area near the docks. White dockworkers attacked and destroyed brothels, dance halls, boarding houses, and tenements that catered to blacks; mobs stripped the clothing off the white owners of these businesses.

Landlordism is not an explanation for our obsession with property today. Selective history and victimhood only perpetuates delusion.

We should be mature enough to accept both the positive and negative.

In the US almost a century after the rioting of 1963, an Irish-American dominated American politics like no other had done before him.

His name was Joseph Raymond McCarthy and he has also been airbrushed from our Pantheon of Heroes.

Sunday, August 26, 2007

Gormley Opposes Incinerators in Ireland but Supports Export of Irish Hazardous Waste for Incineration

IRISH HAZARDOUS WASTE EXPORT DESTINATIONS 2004 - - John Gormley, TD, Green Party leader and Minister for the Environment, Heritage and Local Government opposes waste incineration in Ireland, which may be politically popular but he has provided no clarity on how we can credibly reduce our dependence on landfill.

It is also rank hypocrisy to oppose incineration while 70% of Irish hazardous waste is exported for incineration!


The politics of opportunism generally pays more dividends than the politics of principle and Pat Rabbitte who resigned as leader of the Irish Labour Party last Thursday, is testimony to that.

In an editorial on Friday, The Irish Times said: Mr Rabbitte stood out as one of a rare breed today: he was a principled politician. Right or wrong, he lived a political life of conviction. He firmly believed that a real alternative to a Fianna Fáil-led coalition should be offered to the voters in the 2007 General Election, stood by his principles when he could have done a volte face and, in the end, accepted the decision of the people with his resignation yesterday.

John Gormley, TD, Green Party leader and Minister for the Environment, Heritage and Local Government, who couldn't countenance another five years in Opposition, is more at home with the politics of opportunism and the Irish system of mouthing principle on issues while being happy to have solutions provided overseas, thereby avoiding difficult choices, is nothing new.

Gormley, in an address to the CoolEarth Fair at the Festival of World Cultures in Dún Laoghaire today, will speak on the themes of "Climate Change, Energy, and Nature", and address the issue of the Government's waste policy and incineration, as well as climate change.

In highlighting Government policy on waste management a press release says that the Minister will say "that incineration is no longer the cornerstone of our waste management policy. This Government has a different approach to waste management. We believe the waste hierarchy is paramount. Real emphasis has to be placed on reduction, reuse, and recycling first. Let us be clear: we do not see incineration or thermal treatment as a form of recovery, it is a form of disposal."

"This government has also set out clearly in its programme a more sustainable approach to the financing of waste projects. So-called "put or pay" clauses, which guarantee a waste stream to incinerator firms are now out of the equation, as are waste permits (waster permits can be used to direct waste to certain types of facilities) which perform a similar unsustainable function," Gormley planned to say.

"This new approach will undoubtedly have an impact on planning. In the past we have seen An Bord Pleanála overruling the recommendations of its own inspectors on the basis that incineration was government policy. This is no longer the case. Good planning and the waste hierarchy must take precedence."

The "waste hierarchy is paramount," because Gormley wants to kill off the plan to build an incinerator in his Dublin South-East constituency. His approach is to ensure that no incineration project would be viable at planning stage by preventing councils from committing to supplying a given amount of waste. Gormley's predecessor in office Dick Roche TD, supported the use of incineration but said that he would not have agreed to locating a plant in his own constituency.

Repak in a report on waste in Ireland in 2004, said that the total projected quantity of hazardous waste was 723,921 tonnes. This compares to a projected estimate of 533,592 tonnes in 2001 and represents an increase of 36%. The increase is dominated by the reported generation of contaminated soil.

Hazardous waste includes solvents, lead-acid batteries, asbestos waste and other categories and in 2004, Ireland exported 70% of its hazardous waste. Some 30% of our municipal waste is exported.

Ireland is largely reliant on landfill, which is viewed by the European Commission as a serious threat to water supply as well as in relation to the production of methane.

The European Commission decided last March to start legal action against 14 Member States for inadequately transposing the EU's legislation on the landfilling of waste into their national law. It sent first warning letters to seven Member States last December, and is now doing the same for Cyprus, Czech Republic, Denmark, Estonia, Finland, Ireland, Lithuania, Malta, Poland, Slovakia, Slovenia, Spain, Sweden and the UK.

The Commission's action follows a comprehensive evaluation of the degree of compliance with the landfill directive by all the pre-Jan 1, 2007 EU-25 Member States. The directive governs operation of landfill sites and is a key measure to protect human health and the environment against potential hazards from waste.

Stavros Dimas, European Commissioner for Environment, said: "The Commission's checks have revealed many shortcomings in compliance with the rules on waste landfills in virtually every Member State. The result is that human health and the environment are not being protected as well as they need to be against dangers from the dumping of waste. Eight years after the landfill directive was adopted it is high time for all Member States to rectify this situation without further delay."

The EU Landfill Directive requires reductions in the amount of biodegradable municipal waste being land-filled. This effectively requires the replacement of landfill capacity with infrastructure of a different kind. Many of Ireland’s competitors have already put in place such infrastructure and will have a competitive edge in this regard until such time as the waste treatment capacity required in Ireland is delivered.

A report published in June 2006 by Forfás, the Irish Government's policy advisory agency, says that Ireland has made significant progress in the area of municipal waste management in recent years, with the share being recycled increasing from 13 percent in 2001 to 33 percent in 2004. However, Ireland performs relatively poorly with a recovery rate of 35 percent for industrial waste, highlighting Ireland’s dependence on landfill as a waste management solution. A significant amount of industrial waste is now land-filled on-site by the bigger companies rather than being land-filled in municipal landfills.

-Waste Costs: Of the countries benchmarked, Ireland has the highest waste management costs for non-hazardous landfill and biological waste treatment. Recycling costs and hazardous waste treatment costs are also higher than most competitor countries because of Ireland’s reliance on export markets for the treatment of recyclable materials. The vast majority of Ireland’s recyclable materials are exported for further treatment. Additional transport costs are directly impacting on the waste costs for the enterprise sector.

Infrastructure Deficits

Ireland’s dependence on landfill remains high relative to other countries. This is mainly due to the limited progress that has been made in delivering waste infrastructure in preferred waste treatment options such as thermal treatment and biological treatment. Ireland’s comparatively poor performance on key indicators such as costs and capacity can be traced back to the failure to deliver key waste management infrastructure in recent years. Ireland’s infrastructure deficits are also likely to affect Ireland’s ability to meet the targets set down in the EU Landfill Directive. Ireland will be restricted to landfilling 75 percent of the municipal biodegradable waste produced (by weight) in 1995 by 2010. This means Ireland must reduce its 2004 biodegradable waste levels by almost 340,000 tonnes.

It's easy for Gormley to peddle in the politics of opportunism on an August Sunday with his fatuously termed waste hierarchy.

Have the cojones to oppose incineration directly and then address the landfill and recycling issue.

In Opposition, it's cost free to promote contradictory policies. Oppose nuclear power while not opposing buying power from the UK or being against incineration while exporting most of our hazardous waste for incineration overseas.

What is being offered to the attendees at the CoolEarth Fair and the Nimbies in Dublin South-East is the standard cute hoorism of Irish politics and it doesn't even come in new packaging.

Plus ça change, plus c’est la même chose!